In Germany, companies will be required to identify and account for human rights violations in global supply chains. While largely perceived to be a step in the right direction, some argue the new law falls short.
Germany cabinet launches bill to strengthen rights protection in global supply chains - JURIST - News jurist.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jurist.org Daily Mail and Mail on Sunday newspapers.
By Reuters Staff
1 Min Read
BERLIN, Feb 12 (Reuters) - Germany’s government has reached agreement on legislation that obliges German companies to carry out due diligence regarding human rights and environmental issues in supply chains globally, government sources told Reuters on Friday.
The legislation will apply to more than 600 companies that employ at least 3,000 staff from 2023 and to around 2,900 companies with more than 1,000 staff from 2024, according to a document seen by Reuters.
Critics have warned that the Supply Chain Act would make companies liable for health and environmental damage claims made by environmental non-government organisations, exposing them to unlimited financial risk if those companies are unable to force their suppliers to conform to their requirements.